'Government also to blame'

Michael Geliot, 70, from south-west London, is one of those who cannot escape from Equitable Life because he has an annuity with the society. Worse, it is a with-profits annuity and he has seen his income from it cut by 20 per cent.

Mr Geliot invested £50,000 about 10 years ago. "It is not a matter of life and death for me because I did not put all my eggs in one basket," he said. But he does not agree with Lord Penrose's assertion that the Government cannot be held responsible. "The blame must surely go to the people who establish the regulators and give them their remit."